The CEO of the UK’s biggest residential landlord has said it is an “embarrassment” that the company is not developing any sites in the North East.

Grainger Plc is was founded in Newcastle in 1912 and its head office is still based in the city, but despite investing huge sums of money in new housing developments, the firm has no ongoing projects in the region.

Speaking to The Journal, CEO Helen Gordon said Grainger was on the lookout for a development opportunity in the North East.

“At the moment it is a real embarrassment that we have not secured anything in Newcastle. I am desperate to do something there,” Ms Gordon said.

“The city has great fundamentals, we have a huge team based there, and we have a director of asset management and director of investment who sits on one of the local housing boards.

“We are anxious to get something done up there.”

Grainger - the UK’s largest residential landlord - is in the process of boosting its private rented sector (PRS) portfolio. The firm announced this morning it has agreed to acquire the entire share capital of the GRIP Real Estate Investment Trust, which is valued at £696m.

GRIP includes 35 assets - around 1,700 units - across London and the South East. Grainger currently owns 24.9% of the portfolio but will buy the remaining 75.1% from its joint venture partner APG. The deal is valued at £396m and will immediately start generate £32.5m of rental income each year.

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Ms Gordon said: “I am pleased to announce today the acceleration of our growth strategy in the UK private rented sector with the proposed acquisition of GRIP REIT, our £696m PRS co-investment vehicle with APG, the expansion of our PRS investment pipeline to £1.37bn, and a strong set of financial results for the year.

“The GRIP portfolio, which we have managed since 2013 and therefore know very well, is an exceptional acquisition. It will provide a step change in our investment in the PRS market and generate increased net rental income growth, which in turn will deliver enhanced shareholder returns.

“We have a well-established strategy for growth supported by an excellent operational platform to successfully manage the enlarged PRS portfolio, ensuring that we can deliver strong returns and great homes for our customers.”

Grainger is also growing its PRS business through the launch of its Argo apartment building in London and the Clippers Quay development in Manchester. Around 3,500 PRS units are expected to be added to the company’s pipeline over the next few years.

The acquisition was revealed at the same time as Grainger published its financial results for the year ending September 30. Group revenue for the year jumped from £264.7m to £270.7m, while the firm’s operating profit soared by 30% to £123m.

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The increase in profits was helped along by the sale of a number of the properties, including sites being built in Kensington and Chelsea which are being managed and funded by Grainger.

Grainger also sold its shares in a Walworth Investment Properties Limited for a profit of £7m. The sale was made to Grainger’s joint venture partner Dorrington Investment Plc.

Since the end of the financial year Grainger has also signed two deals in London to deliver new PRS developments. The first deal will see the property firm work with Lewisham Borough Council to develop 300 new homes at New Cross Gate, while for second will see the company acquire a build-to-rent development in Tottenham Hale for £41m.